1,721,115 research outputs found
Economic Impact of Tourism on Fiji's Economy: Empirical Evidence from the Computable General Equilibrium Model
No full textTourism is Fiji's largest industry, earning over F$500 million in foreign exchange and employing around 40,000 people. The tourism industry over the last decade has grown at an annual rate of 10-12%. The expansion of tourism, which generates more expenditure in the economy, is likely to have implications for other industries. In this paper, the aim is to delineate the long-run impact of a 10% increase in tourist expenditure on Fiji's economy. To achieve this, the author uses a computable general equilibrium model. Among the key findings are that a 10% increase in tourist expenditure in Fiji will increase GDP by 0.5% and contribute to an improvement in the balance of payments, real consumption will increase by 0.72% and real national welfare will increase by 0.67%. It is also found that an expansion of tourism will lead to an appreciation of the exchange rate, together with an increase in domestic prices and wage rates, and so traditional export sectors will experience a decline in their export competitiveness. In Fiji's case there is evidence that the increases in tourism and non-traditional exports outweigh the fall in non-traditional exports caused by an expansion of tourism.No Full Tex
Has the Structural Break Slowed Down Growth Rates of Stock Markets?
Get PDFIn this paper, we use the common structural break test suggested by Bai et al. (1998) to test for a common structural break in the stock prices of the US, the UK, and Japan. On the basis of the structural break, we divide each countries stock price series into sub-samples and investigate whether or not the structural break had slowed down the growth of stock markets. Our main findings are that when stock markets are modeled in a trivariate sense the common structural break turns out to be 1990:02, with the confidence interval including several episodes, such as the asset price bubble when housing prices and stock prices in Japan reached a peak in 1988/1989, the early 1990s recession in the UK, the business cycle peak of July 1990, the August 1990 Iraqi invasion of Kuwait and the March 1991 business cycle trough. Annual average growth rates suggest that the structural break has slowed down the growth rate of the UK and Japanese stock markets, while it has boosted the growth of the US stock market.Common Structural Break Test, Stock Markets
Commentary on a method for testing resistance to shocks
No full textThis note tours the Narayan (2020a: Has COVID-19 Changed Exchange Rate Resistance to Shocks?) approach to testing for resistance of a time-series variable to shocks. We take a step-by-step account of this approach and demonstrate its applicability with respect to the crude oil price.
• The approach entails steps (1) to (8), as outline in the paper.
• Future researchers will find this method useful in evaluating the resistance of variables to not only COVID-19 shocks but to any shock which has had a sufficiently long life
Revisiting the US money demand function: an application of the Lagrange multiplier structural break unit root test and the bounds test for a long-run relationship
No full textIn this article, we examine the issue of a levels relationship and stability of the US money demand function over the period 1959:01 to 2004:02. We use the Lagrange multiplier structural break unit root test and the bounds testing approach to a long-run relationship in levels of the variables, namely real money demand, nominal interest rate and real income. We find greater evidence for a long-run relationship in levels and stability of the US money demand function when we use M2 as a proxy for money demand. However, we find little evidence for a long-run relationship between M1 and M2 with their determinants for the recent period, spanning the last decade or so.
Are Nominal Exchange Rates and Price Levels Co‐Integrated? New Evidence from Threshold Autoregressive and Momentum‐Threshold Autoregressive Models*
No full textAn econometric model of the determinants of private investment and a CGE model of the impact of democracy on investment and economic growth in Fiji
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The Macroeconomic Impact of the IMF Recommended VAT Policy for the Fiji Economy: Evidence from a CGE Model
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